Paytm has purpose to cheer! India’s struggling digital payments firm, Paytm, has acquired the inexperienced mild from a government panel overseeing China-linked investments to inject 500 million rupees ($6 million) into a vital subsidiary, three sources instantly acquainted with the matter informed Reuters.
While the approval nonetheless requires clearance from the finance ministry, it is going to remove the first impediment stopping Paytm Payment Services from resuming regular operations.
The government panel had beforehand withheld approval due to issues concerning the 9.88% stake in Paytm owned by China’s Ant Group, as India has heightened its scrutiny of Chinese companies following a border conflict between the 2 nations in 2020.
Paytm has been awaiting the panel’s approval for about two years, and with out it, the corporate would have been pressured to shut down its cost companies enterprise, which was prohibited from accepting new prospects in March 2023.
Also Read | ‘Paytm like a daughter who…’: Vijay Shekhar Sharma’s emotional view on Paytm Payments Bank disaster
Paytm Payment Services, which generates 1 / 4 of the fintech firm’s consolidated income for the fiscal 12 months ending March 2023, is without doubt one of the most vital remaining elements of Paytm’s enterprise.
Earlier this 12 months, one other unit, Paytm Payments Bank, was shut down by order of the Reserve Bank of India due to ongoing compliance points, main to a major decline in Paytm’s inventory worth.
Once the approval is formalized, Paytm will likely be eligible to apply for a “payment aggregator” license from the Reserve Bank of India. The sources, together with two government officers, requested anonymity as the choice has not been formally introduced.
India’s overseas, dwelling, finance, and industries ministries, whose representatives are members of the panel, didn’t reply to emails in search of remark.
A Paytm spokesperson informed Reuters, “We will continue to make disclosures in compliance with our obligations under the SEBI Regulations, and will inform the exchanges when there is any new material information to share.”
While the approval nonetheless requires clearance from the finance ministry, it is going to remove the first impediment stopping Paytm Payment Services from resuming regular operations.
The government panel had beforehand withheld approval due to issues concerning the 9.88% stake in Paytm owned by China’s Ant Group, as India has heightened its scrutiny of Chinese companies following a border conflict between the 2 nations in 2020.
Paytm has been awaiting the panel’s approval for about two years, and with out it, the corporate would have been pressured to shut down its cost companies enterprise, which was prohibited from accepting new prospects in March 2023.
Also Read | ‘Paytm like a daughter who…’: Vijay Shekhar Sharma’s emotional view on Paytm Payments Bank disaster
Paytm Payment Services, which generates 1 / 4 of the fintech firm’s consolidated income for the fiscal 12 months ending March 2023, is without doubt one of the most vital remaining elements of Paytm’s enterprise.
Earlier this 12 months, one other unit, Paytm Payments Bank, was shut down by order of the Reserve Bank of India due to ongoing compliance points, main to a major decline in Paytm’s inventory worth.
Once the approval is formalized, Paytm will likely be eligible to apply for a “payment aggregator” license from the Reserve Bank of India. The sources, together with two government officers, requested anonymity as the choice has not been formally introduced.
India’s overseas, dwelling, finance, and industries ministries, whose representatives are members of the panel, didn’t reply to emails in search of remark.
A Paytm spokesperson informed Reuters, “We will continue to make disclosures in compliance with our obligations under the SEBI Regulations, and will inform the exchanges when there is any new material information to share.”
